Press Release - September 29, 2008
New HRA Energy Improvement Loan Program targeted to homes
within the city of Hutchinson to help reduce rising home
energy costs
The Hutchinson HRA announces that Minnesota
Housing Finance Agency has approved the Community Fix Up
Fund/Green Loan Program for owner occupied homes in
Hutchinson. Single family home owners with at least one
eligible energy improvement such as a furnace, windows,
doors, insulation, air conditioning, water heater or
built-in appliances can apply for a no interest Green
Deferred Loan. The Green Deferred Loan will cover up to 25%
of the eligible energy improvement cost, with a maximum loan
amount up to $1500. The remainder of the energy improvement
costs and other home improvement costs will be covered by
the Community Fix Up Fund Loan Program. For more
information and a list of eligible CFUF/Green Deferred Loan
Program Energy Conservation Items please call Judy Flemming
at the Hutchinson HRA, 234-4251 or visit the
Rehabilitation link on this web
site.
The Hutchinson HRA announces that a new
program for foreclosure mitigation is now available for
houses purchased within the City of Hutchinson to provide
homebuyers with cash to close and provide funds to bring
homebuyers as close as possible to paying 30% of their
income for housing costs.
The HRA applied and was approved for
the HOME HELP program as part of the Hutchinson Workforce
Housing CASA Initiative. HOME HELP is an entry cost/closing
cost assistance program with up to $14,999 available to
eligible homebuyers. 70% of the HOME HELP homebuyer loan is
forgiven after five years.
Please click on Homebuyer Programs for
a list of participating lenders or call the Hutchinson HRA
at 320-234-4251.
News:
Letter to Editor
Hutchinson Leader
With all the foreclosures in the news lately,
it is important that homeowners know what to do if they fall
behind in their payments, or what their options are if they
are concerned about their mortgage terms. For example, if
you have an adjustable rate mortgage (ARM) that you will be
unable to make the payments on when the interest rate rises,
you need to evaluate all your options and start your plan
now. Lutheran Social Services (www.lssmn.org/debt)
provides counseling for the Hutchinson area and can be
reached at 1-888-577-2227 to set up an appointment. At this
appointment, your counselor will do a financial analysis and
come up with a budget and plan based upon your financial
situation. Lutheran Social Services administers a Minnesota
Housing Finance Agency
(MHFA) Foreclosure Prevention Program that
offers a 0% deferred loan to qualified homeowners facing
foreclosure.
According to the Minnesota National
Association of Housing & Redevelopment Officials (Nahro), a
meeting was held on July 31, 2007 at the State Capital
focused on possible changes to foreclosure law. A
“Foreclosure Prevention Funders Council” has also been
meeting to act as a resource/clearinghouse of ideas and
information to the Legislature. The intent is to have some
proposals in place before the next legislative session
begins on February 12, 2008.
Although Hutchinson has only six foreclosures
listed currently on Foreclosure.com and McLeod County has 27
foreclosures listed, a recent study sponsored by the Greater
Minnesota Housing Fund projects an increasing number of
foreclosures in Greater Minnesota during the next one to two
years. The rising foreclosure rate is fueled by borrowers
with subprime loans and adjustable rate mortgages (ARM).
The current low foreclosure rate in Hutchinson shows a
commitment by our local lenders for prudent underwriting
standards.
The Hutchinson HRA offers first time
homebuyer programs that support successful homeownership.
In particular, our entry cost assistance programs are linked
to thirty year fixed rate mortgages for those homebuyers
that are mortgage ready. For first time homebuyers, the
best plan is to attend a Homestretch first time homebuyer
workshop and consult with a participating HRA Program
lender. Call Heartland Community Action Agency at
320-235-0850 to register for the next Homestretch workshop;
it will be well worth your time. In addition, the HRA
website (www.hutchinsonhra.com
) describes the first time homebuyer programs available in
Hutchinson and provides a list of participating HRA Program
lenders. With the programs available for mortgage ready
first time homebuyers, our workforce has a good opportunity
to own and keep a home in Hutchinson.
Sincerely,
Jean Ward
Hutchinson HRA Executive Director
Update:
The Expanded Franklin Grove Rehab program has
started. 10 homes completed; 3 homes are under construction and
8 more
are in process. The HRA’s goal is to help 20 homeowners.
If more are interested the HRA will apply for additional
funds.
·
The program assists Homeowners with a 0%
Interest, Deferred Loan forgiven after 10 years. If the
property is sold, title is transferred, or the Borrower no
longer lives in the home before the 10-year forgiveness
date, 10% will be forgiven each full year in the home.
· The SCDP Loan amount is 60% of
the repair costs. 40% of project cost is an Owner
Match. Match funds can be obtained from other
products available through the Hutchinson HRA.
· The maximum SCDP Loan amount
available is $24,999, per property. Any costs exceeding this
amount will be the responsibility of the Homeowner.
· The Main Purpose of the Program is to address
Health & Safety Issues, along with other improvements such
as Repair or Replacement of the following:
-
Defective plumbing, heating or electric
systems
-
Roofing, windows and doors
-
Exterior carpentry such as rotting
siding, porches and steps, etc.
-
Interior carpentry such as walls and
floors
-
Handicap Accessibility Issues
·
A Minnesota licensed general
contractor that is on file at the HRA office will have to do
the rehab work and depending if your home has lead-based
paint, a Lead-Certified Contractors may be needed.
·
To Qualify:
-
You must live in the targeted
neighborhood
-
You must own the home free and clear
of debt OR have 1/3 fee title interest in the
property, through a Mortgage, Contract of Deed or
Life Estate that is on record at the McLeod County
Recorder’s Office.
-
You must be current on
House Payments and Property Taxes.
-
You must be able to acquire an Owner
Match of 40% of the project cost. Match funds can be
obtained from other products available through the
Hutchinson HRA.
-
-
Your Gross Annual Total Household
Income for the SCDP Loan, of any person age 18 or
older, including ALL SOURCES of income, cannot
exceed the following limits:
|
Family Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Income Limit |
$37,700 |
$43,100 |
48,450 |
53,850 |
58,150 |
62,450 |
66,750 |
71,100 |
The application is
available on the HRA’s webpage
www.hutchinsonhra.com
or at the HRA office in the City Center. If you have
questions please call Judy at (320) 234-4251.
Click here to learn
more about the Franklin Grove Expanded Rehab Project.
